The company saw net income rise by 31.4% to 2.05 billion Brazilian reais ($1.01 billion), compared with the first half of 2011, buoyed by the take-up of fast broadband connections and greater usage of voice services.

Were it not for a new tax rate, the company says its revenues would have grown by 42% year on year.

Sales of services offering connection speeds of more than 15Mbps represented some 41% of the total, compared with 24% in the first half of 2011.

Meanwhile, the number of lines in service rose by 41% to 7.4 million.

GVT also reported success in its pay TV business. Having signed up 203,000 customers in total, it lays claim to an 11% share of Brazil’s pay TV market.

Nevertheless, the company is now predicting revenue growth of just 30% for the full year, compared with a previous forecast of about 35%.

Although GVT has not provided reasons for the alteration, a slowdown in the growth of the Brazilian economy seems largely to blame.

Many economists have reduced forecasts of GDP growth from 4% earlier in the year to around 2% now, and GVT’s rivals have already held this responsible for more pessimistic guidance.

On the plus side, the operator expects to maintain its margin on earnings before interest, tax, depreciation and amortisation at above 40%.